Fiscal Responsibility

GOVERNOR O'MALLEY

Protecting Our Priorities

CLOSED THE STATE’S $1.7 BILLION DEFICIT LEFT BY BOB EHRLICH

Governor O’Malley passed slots legislation to provide funding for our public schools, raised the state’s sales tax by 1 penny to keep Maryland competitive with surrounding states, and developed a long-term plan to fund higher education and transportation projects.

CUT THE INCOME TAX RATE FOR 85% OF MARYLANDERS

Under Governor O’Malley’s income tax restructuring, 85% of Marylanders are paying less income tax than they paid under the Ehrlich administration.

CUT TAXES FOR OUR SMALL BUSINESSES

Governor O’Malley signed into law The Job Creation and Recovery Tax Credit which gives any business that hires an unemployed Marylander a tax credit of $5,000.

STABILIZED THE UNEMPLOYMENT TRUST FUND

Working together with the Maryland Chamber of Commerce and the Labor community, Governor O'Malley signed legislation to stabilize the Unemployment Insurance Trust Fund and help relieve pressure on small businesses facing higher premiums due to a law signed by former Governor Ehrlich in 2005.

EXPANDED THE EARNED INCOME TAX CREDIT

Governor O’Malley led the fight to expand the Maryland Earned Income Tax Credit by 25% so more of our hard working families have the resources they need to weather this tough economy. For the 2008 tax year, 363,791 Maryland taxpayers received more than $190 million in Earned Income Tax Credits.

DECREASED STATE SPENDING MORE THAN ANY OTHER MODERN GOVERNOR

Governor O’Malley exemplified fiscal responsibility by decreasing state General Fund spending by 3% over his four years. This year, spending across all funds declined—the first time in at least 39 years that an operating budget declined as compared to the previous year.

REDUCED THE SIZE OF THE GOVERNMENT

Governor O’Malley cut $5.6 billion in spending, reduced the size of the executive branch by 4.6%, and eliminated over 4,200 government positions.

PROTECTED OUR TRIPLE A BOND RATING

Under Governor O’Malley, Maryland is one of only eight states to maintain a AAA bond rating certified by all three major bond rating agencies – saving taxpayers millions. This rating reflects investor confidence in our state’s financial stability and is indicative of Governor O’Malley’s fiscal responsibility.

PRODUCED FOUR BUDGETS IN A ROW BELOW THE SPENDING AFFORDABILITY LIMIT

He was the first Governor ever to follow the guidelines and propose a negative growth rate of negative 2.9%.

Governor O'Malley: Moving Maryland Forward

BOB EHRLICH:

Increased Taxes and Fees

INCREASED TAXES AND FEES BY $3.3 BILLION DOLLARS

Ehrlich increased 31 taxes and fees including $519 million increase in the car tax, $300 million increase in highway tolls. Bob Ehrlich created a new flush tax for every Marylander and jacked up college tuition by 40%. And even with these taxes, he still left Maryland with a $1.7 billion deficit

RAISED THE STATE PORTION OF THE PROPERTY TAX COSTING MARYLANDERS $690 MILLION

Impacting every Maryland family and business, Bob Ehrlich increased the state portion of the property tax--the only increase in the state in 30 years.

RAISED TAXES ON OUR SMALL BUSINESSES

Bob Ehrlich raised corporate filing fees by $188 million making it harder for entrepreneurs to start their own businesses.

JACKED UP COLLEGE TUITION BY 40%

Bob Ehrlich repeatedly cut funding for higher education that resulted in skyrocketing tuition increases that exceeded 40% at the University of Maryland at College Park and other campuses across Maryland.

RECORD INCREASES IN STATE SPENDING

In his four year term, Bob Ehrlich increased General Fund spending by over 33% and proposed the largest-ever increase in state spending in Maryland’s history.

INCREASED STATE SPENDING MORE THAN ANY GOVERNOR IN MARYLAND HISTORY

Bob Ehrlich increased state General Fund spending by over $3 billion, dwarfing the increases of other governors, including Glendenning and Schaefer. In his four year term, he increased General Fund spending by over 33% and proposed the largest-ever increase in state spending.

CREATED A $1.7 BILLION DEFICIT

Even after Bob Ehrlich increased taxes and fees by $3.3 billion, his record spending increases left Maryland with a $1.7 deficit.

JEOPARDIZED OUR STATE’S FINANCES

Ehrlich’s reckless spending increases left the state in a lurch because they didn’t anticipate the recession. A January 2006 Baltimore Sun editorial said of Ehrlich’s spending, “it's hard to endorse a management philosophy that doesn't look beyond 2006 - or take into account the possibility that the economy might eventually sour.”